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City councilman files Chapter 13 bankruptcy to save home

Although politicians and government officials are often in the public eye, they also have the same type of problems that every other person encounters in life. This includes financial problems which may stem from overwhelming debt in Texas or in any other state. One city councilman is now facing this type of problem which has forced him to file a Chapter 13 bankruptcy.

The city councilman filed his bankruptcy petition with the court in late December 2013. At the time of the filing he was only one day away from having his home being auctioned in order to repay debts that he owes to the city. The city councilman and his brother owe the local city government over $32,000 after losing a lawsuit which they filed against the city in 2002. The lawsuit centered around auditing credit cards issued to city employees to ensure there is no misuse of public funds.

In 2003 the judge in the case ordered the city councilman and his brother to pay the money. However, the city councilman and his brother have paid only $416 of the amount ordered by the judge. The Chapter 13 bankruptcy filing will allow the city councilman to keep his home while also allowing him to repay debts owed to the city over time. The brother of the city councilman also filed a Chapter 7 bankruptcy.

The two brothers decided to file different types of bankruptcies based upon their specific situations. Chapter 13 bankruptcy and Chapter 7 bankruptcy filings have varying benefits in Texas and in every other state. Therefore, it is important to understand the intricacies of each type of bankruptcy before making a final decision regarding which type of bankruptcy to file with the court.

Source: digtriad.com, High Point City Councilman Files Chapt. 13 Bankruptcy, Morgan Hightower, Jan. 3, 2014

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